The Federal Reserve Bank of St Louis recently analyzed the reasons behind declining US labor force participation rates. They find these rates are declining neither because of an increase in discouraged workers nor because of an increased dependency on various forms of welfare (government support), but rather: Piecing together these characteristics of the working-age population, we can help explain the declining labor force participation rate. The clearest trend is the overall aging of the working-age population, largely because the baby boomers started retiring in the early 2000s. Similarly, more education implies spending more years in school, giving people later starts to their working careers. Also putting downward pressure on the LFP rate is the increased participation of women in the labor force, since families have to decide how to balance their time accordingly. That is, with more mothers working full time, fathers may decide to stay at home or work only part time to help care for children and do any work that is needed at home. How could we capture such effects in the consumer model of Chapter 4?